Reference no: EM131219349
Prepare journal entries, Use the letter of the transaction as the entry date. Omit explanations. Round all calculations to the nearest whole dollar.
(1) The comapny spent $31,000 on parts and $46,000 on labor under warranties during the year. The customers were required to pay a total of $5,000 for this warranty work
(2) The company had a total gross pay for the year of $1,400,000. All of this pay was subject to the 7.65% FICA taxes (6.2% for Social Security and 1.45% for Medicare). In addition, $325,000 was withheld for Federal Income Taxes, 3% of the pay was withheld for state income taxes withholding, and $145,000 for employee benefits paid by employees. In addition , $40,000 of these wages were subject to 2.5% state unemployment taxes, 0.7% federal unemployment taxes, and $300,000 was paid by the employer for employee benefits. First, accrue all of the appropriate amounts, and then assume that all of the amounts have been paid in cash by the end of the year.
(3) The company determined that 350 days of vacation are accrued at year end. Average compensation is assumed to be $12.50 per hour based on an 8 hour day. The company had no balance for accrued vacation pay at the beginning of the fiscal year.
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Use the letter of the transaction as the entry date
: Prepare journal entries, Use the letter of the transaction as the entry date. Omit explanations. Round all calculations to the nearest whole dollar. The comapny spent $31,000 on parts and $46,000 on labor under warranties during the year. The custome..
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